Ontario Real Estate Licensing Exam Practice · Question
What type of lease agreement in commercial real estate requires the tenant to pay for their proportionate share of property taxes, building insurance, and common area maintenance (CAM) in addition to base rent?
A net lease, particularly a Triple Net Lease (NNN), places the responsibility for property taxes, insurance, and common area maintenance costs on the tenant, in
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
Question: What type of lease agreement in commercial real estate requires the tenant to pay for their proportionate share of property taxes, building insurance, and common area maintenance (CAM) in addition to base rent?
Answer options: ✅ Net lease (or Triple Net Lease)
- Gross lease
- Percentage lease
- Stepped lease
Correct answer: Net lease (or Triple Net Lease)
Explanation: A net lease, particularly a Triple Net Lease (NNN), places the responsibility for property taxes, insurance, and common area maintenance costs on the tenant, in addition to their base rent. This is a common structure in commercial real estate to shift operating expenses to the lessee.
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
More about Ontario Real Estate Licensing Exam Practice
Related Questions
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
- A seller accepts a conditional offer. Before the conditions are fulfilled, the seller receives a firm, higher
- Which of the following is a common encumbrance that would be registered on title and affect a property owner's
More for Ontario Real Estate Licensing Exam Practice candidates
Study guides
Question explanations
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Ontario Real Estate Licensing Exam Practice Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.